KUALA LUMPUR (July 23): Since the beginning of the year, local market sentiment has been lacklustre, with the benchmark FBM KLCI dropping 7.49% — one of the underperformers in the region. Net selling of shares on Bursa Malaysia by foreign funds amounted to RM12.61 billion during this period. 

As such, some market observers are calling on Corporate Malaysia to initiate share buybacks as a means to boost valuations and stem long-term capital outflows.

Based on Bloomberg data, only 92 companies or 8.5% of the 1,083 listed on the local bourse have conducted share buybacks in 2025. Of these, half are in a net debt position, suggesting that companies, regardless of their balance sheet strength, are willing to repurchase their own shares when they perceive value.

Ancom Nylex Bhd (KL:ANCOMNY) emerged as the most aggressive buyer, having repurchased 83.62 million shares, equivalent to 8.89% of its total issued shares. This year, its share price broke key support level at RM1 and twice found strong buying interest around the 88 sen mark, forming a potential double-bottom pattern. A double-bottom is a chart pattern resembling the letter “W”, often indicating that a stock has found a support level and may be poised for a rebound.

The second-largest buyer was Yinson Holdings Bhd (KL:YINSON), which repurchased 147.99 million shares or 5.31% of its issued shares. Yinson’s stock has been volatile since the start of the year, falling from a high of RM2.80 to a low of RM1.73 in early April — a 38% decline — amid tariff-induced market angst. The company made a sizeable buyback of 10.66 million shares on April 7 alone. Since then, the stock has rebounded to around RM2.30.

Subsequent firms which conducted the most buybacks boast more robust balance sheets. Maybulk Bhd (KL:MAYBULK), for instance, holds net cash amounting to approximately 44% of its market capitalisation and has repurchased 47 million shares, or 5.07% of its issued shares. The company is in the midst of scaling down its bulk carrier operations while expanding its commercial and industrial shelving business. Its shares have broken below the 33 sen level and recently found support around 29 sen.

Coming in at fourth place is plantation player TSH Resources Bhd (KL:TSH), having repurchased 60.13 million shares — representing 4.44% of its outstanding shares. Over the past two years, the group has generated RM220 million in net cash flow from operations annually and currently holds a net cash position of RM45.56 million. Its share price has found support around the RM1.08 level.

Rounding out the top five is Pan Malaysia Corp Bhd (KL:PMCORP), a small-cap company with a market capitalisation of just RM98 million and a net debt position of RM51.1 million. Despite financial constraints, it repurchased 30.61 million shares, or 3.47% of its total shares in 2025. Its share price has held up around 11.5 sen.

Notably, only two of the 30 FBM KLCI constituents have conducted share buybacks in 2025, namely AMMB Holdings Bhd (KL:AMBANK) and QL Resources Bhd (KL:QL), repurchasing 0.19% and 0.02% of their total issued shares, respectively.

And among the top 100 companies by market capitalisation, VS Industry Bhd (KL:VS), Kossan Rubber Industries Bhd (KL:KOSSAN) and Zetrix Ai Bhd (KL:ZETRIX) stood out as the most aggressive, buying back 1.06%, 0.63% and 0.44% of their issued shares, respectively.

Meanwhile, The Edge conducted an analysis to identify potential companies that may be undertaking stock repurchases, based on two key factors: the size of their cash reserves and inclination toward share repurchases, as indicated by whether they conducted any buyback in 2025.

Among these firms, Coastal Contracts Bhd (KL:COASTAL) stands out with a net cash position of RM995.85 million — 42% higher than its current market capitalisation of RM699.54 million. Despite strong liquidity, its share price has been trending downward since February 2023, falling from RM2.50 to RM1.30, likely attributable to its fluctuating financial performance, which has swung between profits and losses. To date, it has repurchased 542,490 shares, representing 0.3% of its total issued shares.

Property developer and crude palm oil trader Dutaland Bhd (KL:DUTALND) also holds sizeable cash reserves of RM239.45 million — exceeding its market capitalisation of RM224.2 million. It has repurchased nearly 776,000 shares to date, or about 0.28% of its outstanding shares. Its current share price of 26.5 sen is a fraction of its net tangible assets (NTA) of RM1.47. The stock is hovering near a 16-year low, likely due to its weak financial performance. For the nine months ended March 31, 2025 (9MFY2025), the company posted a net loss of RM2.55 million on RM332.54 million in revenue.

Cash-rich furniture players, namely Rhong Khen International Bhd (KL:RKI) and Homeritz Corp Bhd (KL:HOMERIZ), were also on the list. Both companies have shown an inclination toward buybacks, repurchasing 0.19% and 0.95% of their shares, respectively, this year. Nevertheless, their forward prospects remain uncertain due to a challenging operating environment and weak order volumes, as demand has softened following earlier pull-forward effects and ongoing tariff pressures affecting the industry.

Interestingly, several semiconductor-related companies — known for their prudent balance sheets and sizeable cash reserves — have also been engaging in share buybacks. These include MI Technovation Bhd (KL:MI) (0.35% of total issued shares), QES Group Bhd (KL:QES) (0.10%), Genetec Technology Bhd (KL:GENETEC) (1.41%) and Frontken Corp Bhd  (KL:FRONTKN) (0.12%). Year to date, their share prices have declined between 7.9% and 40.6%, with Genetec being the hardest hit — likely due to its positioning as a Tesla proxy amid heightened volatility in the electric vehicle supply chain. This comes as no surprise, given the technology sector faces the double blow from the US’ tariff measures and chip ban rhetoric.

When contacted by The Edge, Coastal Contracts affirmed that while it has actively pursued share repurchases this year, its primary focus remains on maintaining a balanced capital allocation strategy. The company may consider additional buybacks if market conditions soften, provided such actions align with its long-term objectives and commitment to shareholder value creation.

Echoing a similar stance, QES Group stated that it continues to monitor its share price relative to intrinsic value and will initiate buybacks if the stock trades materially below its perceived fundamentals and long-term prospects.

MI Technovation, meanwhile, signalled flexibility for further buybacks at reasonable valuations. Guided by its “Balanced Stakeholder Interest” principle, the company plans to allocate its cash reserves toward both strategic growth initiatives and shareholder distributions.